CITY DEVELOPMENTS LIMITED ANNUAL REPORT 2021 SUSTAINABILITY 70 71 CDL’s Top Material ESG Issues Risks and Opportunities CDL’s Responses and Achievements 14. Cyber-readiness, Security and Data Privacy Supporting SDGs: TCFD Pillars: G, RM Strengthening CDL’s capabilities to protect itself and recover from cyber-attacks is vital to preventing data theft, financial loss, and disruption of operations. In enhancing digital connectivity, the rapid shift to a virtual and remote working environment can increase vulnerability in business systems due to user behaviour or external factors such as malware and phishing attacks. Given rising data privacy concerns both locally and globally, CDL needs to be mindful of compliance requirements for international and local data privacy protection laws. Besides establishing holistic IT governance structures and developing robust detection and mitigation measures to protect CDL’s critical business systems and data, the Company’s response plans are tested by internal auditors and an external professional firm and aligned with industry best practices. Given recent developments in data privacy regulations and the increasing impact of potential data privacy breaches, CDL’s risk assessment framework has identified data privacy as a key risk. As such, CDL has been carrying out various mitigating measures including staff awareness training, as well as the monitoring of local and international data privacy developments that are relevant to its business. Recognising that cyber-readiness, security and data privacy are constantly evolving and there will be the emergence of new threats and vulnerabilities, CDL is committed to continuously improving its network security and data protection measures. 15. Future-ready Workforce Supporting SDGs: TCFD Pillars: S, RM Companies need to remain nimble to adapt to changing work conditions and arrangements (e.g. flexiwork and hybrid work models). A workforce that does not keep up with industry developments, knowledge and technological trends will have a negative impact on human capital, operational efficiency, and business continuity. Building a workforce with skill sets that future-proof CDL’s business in a fast-evolving global economy is a priority. CDL actively fosters a culture of continuous learning, enabling employees to acquire holistic skills and competencies to stay relevant and adapt to changing job demands. With most of CDL’s workforce working from home in 2021, virtual learning and career development opportunities were made available to its employees. Topics covered include project management, mindfulness, big data and data analytics, sustainability, occupational health and safety, and the cultivation of healthy lifestyles. 16. Human Rights and Labour Conditions Supporting SDGs: TCFD Pillars: G, S, RM Respecting and promoting the rights and dignity of employees, workers and communities help to build a more resilient supply chain, which is expected from responsible businesses. Creating a workplace that provides a decent work environment, fair remuneration, security in the workplace, freedom of expression, work-life balance, and career growth, is key to building a sustainable workforce. This allows CDL to strengthen employee loyalty and increase work productivity. CDL engages its contractors and suppliers to abide by its fundamental principles and policies such as the Supplier Code of Conduct, Human Rights Policy, and Universal Design Policy. Since 2001, the CDL 5-Star EHS Assessment – an independent audit tool to assess, measure, and improve the main contractors’ EHS management and performance – has been in place to ensure a comprehensive, audited, and appraised approach. To help its workforce adapt to WFH arrangements, CDL ensured that its staff were equipped with the knowledge to use digital tools to facilitate effective communication. CDL conducts a biennial employee engagement survey to understand its employees’ concerns and engagement levels, enabling CDL to be an employer of choice. 17. Biodiversity Conservation (NEW) Supporting SDGs: TCFD Pillars: G, S, RM The health of biodiversity systems is intrinsically linked to climate change. Without proper assessment and mitigation and prevention measures, the natural habitats of flora and fauna could be negatively impacted during building development and management. Since 2010, CDL has been voluntarily conducting Biodiversity Impact Assessments (BIA) on greenfield sites before construction. To advance biodiversity protection and urban greenery at its sites and buildings, a Biodiversity Policy, expanding on its BIA practices, was formulated in 2020. The policy complements Singapore’s “City in Nature” vision established in 2021. In 2016, CDL piloted an Environmental Impact Assessment (EIA) study for its Forest Woods residential development. Based on this pilot, CDL is exploring possibilities of applying it for future developments. This is aligned with CDL’s commitment to adopt nature-based solutions (e.g. biophilic building design) to promote the integration of the built environment with nature. SUSTAINABILITY BOARD STATEMENT CDL FUTURE VALUE 2030 GOALS, TARGETS AND PROGRESS Legend: Progress Tracking Falling short of interim target for more than two years, review and revise targets (if necessary). Meeting interim targets, maintain performance towards meeting 2030 targets. Falling short of interim target for one year, review current practices. Future Value 2030 Goals 2030 Targets Interim 2021 Annual Targets FY2021 Performance Goal 1: Building Sustainable Cities and Communities Achieve Green Mark certification for 90% of CDL owned and/or managed buildings1 ≥85% 85% achieved Maintain 100% retail and office tenant participation in CDL Green Lease Partnership Programme Achieve 100% 100% maintained Maintain high level of commitment to adopt innovations and technology of green buildings Average of two innovation and technology applications per year 1. Plastic Neutrality Certification 2. DigiHUB Maintain high level of sustainability engagements and advocacy activities Average of ≥36 engagement and advocacy initiatives and activities per quarter Average of 75 engagement and advocacy initiatives and activities per quarter Goal 2: Reducing Environmental Impact Achieve science-based target of reducing carbon emissions intensity by 59% from 2007 levels2 42% reduction 42% reduction3 Asset Management (AM) - Office & Industrial2: Reduce energy use intensity by 45% from 2007 levels Reduce water use intensity by 50% from 2007 levels4 Reduce waste intensity by 16% from 2016 levels4,5 Energy use intensity: 37% reduction Water use intensity: 43.5% reduction Waste intensity: 14% reduction Energy use intensity: 48% reduction Water use intensity: 56.9% reduction Waste intensity: 29% reduction Asset Management (AM)- Retail2: Reduce energy use intensity by 18% from 2010 levels Reduce water use intensity by 9% from 2010 levels Reduce waste intensity by 12% from 2016 levels5 Energy use intensity: 18% reduction Water use intensity: 8% reduction Waste intensity: 10.7% reduction Energy use intensity: 31% reduction Water use intensity: 44% reduction Waste intensity: 16.4% reduction6 Corporate Office: Reduce energy use intensity by 31% from 2007 levels Energy use intensity: 29% reduction Energy use intensity: 37% reduction Notes: 1 Calculated based on % of total gross floor area (aligned with BCA’s calculation of green buildings). 2 Intensity figures were calculated based on per unit net lettable floor area. 3 Reduction value includes the RECs purchased and retired for the year 2021. 4 Water use and waste intensities include water use and waste disposed of by CDL Corporate Office. 5 Waste intensity figures are for non-recyclable waste. 6 Waste intensity performance for retail assets does not factor in footfall during the COVID-19 pandemic due to exceptional fluctuations in footfall in the retail sector. CDL’s Value Creation Model Aligned with 14 UN SDGs Aligned to Global Standards & Goals Build Sustainable Profitability while Conserving the Environment Build Quality, Green and Innovative Spaces Build Organisational Resilience and Employee Commitment Build Partnerships and Bonds with the Community FINANCIAL CAPITAL MANUFACTURED CAPITAL ORGANISATIONAL CAPITAL SOCIAL & RELATIONSHIP CAPITAL HUMAN CAPITAL NATURAL CAPITAL ESG INTEGRATION SINCE 1995 FUTURE PROOFING BUSINESS SUSTAINABILITY BLUEPRINT: CDL FUTURE VALUE 2030 TOWARDS NET ZERO CARBON COMMITMENT* 2005 Since 2008 2016 2017 2018 2020 2021 2010 2015 2013 CONSERVING AS WE CONSTRUCT SINCE 1995 INTEGRATED APPROACH SINCE 2015 * CDL has pledged to achieve net zero operational carbon by 2030, covering new and existing wholly-owned assets under our direct management and operational control. We expanded the commitment to achieve maximum reduction of embodied carbon in new developments, compensating for any remaining residual operational and upfront embodied emissions via offsetting for new developments by 2030 and for all buildings to be net zero carbon by 2050.
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